A Company Uses the Indirect Method to Prepare the Statement

question 174

Multiple Choice

A company uses the indirect method to prepare the statement of cash flows. It presents the following data on its financial statements: *Relates solely to the acquisition of inventory
What will appear in the operating activities section related to salary payable?

• A)The decrease of $9000 will be added to net income.
• B)The decrease of $9000 will be added to cost of goods sold.
• C)The decrease of $9000 will be subtracted from cost of goods sold.
• D)The decrease of $9000 will be subtracted from net income.

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Definitions:

Denial Of Claims

The refusal by an insurance company to honor a request for payment of a claim, based on certain terms and conditions of the policy.

Routine Requests

A common or repeated type of request made in a business or professional context, often following a standard format or procedure.

Positive Message

Communication aimed at creating a favorable impression or outcome, often focusing on affirmative and encouraging information.

Routine Message

Standardized communications used in everyday business operations, often following a set template or format.